So, here is the point: if the mighty US Empire, at the height of its world hegemony, could not honour the anchor of the feted postwar financial system, that is the fixed conversion rate, what gives us the confidence to imagine that a private outfit, such as Tether or Binance, can do it sustainably? Nothing! Indeed, logic dictates the opposite because of the structure of the incentives built into Trump’s strategic crypto reserve. Think about it: as more dollars go into stablecoins, US Treasury yields are lowered and the issuers of stablecoins have a stronger incentive to invest in less stable assets. Indeed, they may even risk issuing additional tokens without backing them with additional dollar-denominated safe assets. The more this goes on, the greater the reliance of the US government, and of the global monetary system, on privateers whose incentives are to act less responsibly. Does this classic case of moral hazard remind you of anything? If not, I would recommend watching The Big Short again.